If Activity X Had a Budgeted Cost of $125,000 and a Budgeted

question 90

Multiple Choice

If Activity X had a budgeted cost of $125,000 and a budgeted activity consumption of 10,000 engineering hours, what would the activity consumption rate be?

• A)$10 per hour.
• B)$12.50 per hour.
• C)$0.08 per hour.
• D)0.10 per hour.

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Definitions:

Law of Small Numbers

The erroneous belief that small samples will accurately represent the larger population from which they are drawn.

Law of Small Numbers

A cognitive bias that leads people to draw broad conclusions from small samples of data.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Gambler's Fallacy

The erroneous belief that if a particular event occurs more frequently than normal during the past, it is less likely to happen in the future, or vice versa, in situations that are truly random.